Instant view: USD barely reacts to PCE print

- PCE inflation in April at 1.6% YOY
- Reading in line with market expectations
- Market barely reacts to the data

The US PCE inflation data has just been released and it was the final noteworthy reading scheduled for this week. There were some concerns prior to the release as yesterday’s revised GDP report showed an annualized pace of price growth of just 1%. Today’s reading showed that the Fed's preferred measure of inflation reached 1.6% YoY in April. The reading was in line with expectations and in turn we did not see much of a price reaction.

EURUSD saw a minor pullback in response to the release of PCE data. However, the scale of the move was less than 0.1%. Source: xStation5